QUESTION 4Calculate the net profitQUESTION 5Calculate the ROAI (Return on Investment for Advertising) as a percent to two decimal places (XXX.XX). Do not includethe % signQUESTIONCalculate the cost per order (CPO) (XXX.XX]. Do not include the $ signQUESTION 7Did you meet your advertising allowable?O YesNo Wawa, Inc., a startup footwear company, currently sells just one type of sneakers, Tribe. As Wawa's marketing vice-president in charge of its anniversary sales of its Tribe sneakers, you were given a marketing budget of $2.5 million forthe upcoming sale for one 30-second direct-response internet ad. The ad provides the website address that will allowWawa's to track when a hit has resulted from people seeing this particular ad. You get 1.7 million hits on that website. Isthis good? How many Tribe sneakers did you eventually sell as a result? Did the ad pay for itself or not? Could you havedone better by spending your money on some other form of advertisingLet's say that of the 1.7 million visitors to your site, 0.005 percent ordered the Tribe sneakers by visiting your website.You, of course, created a special Web address just for this commercial, so you could accurately evaluate how manyresponses and orders this one ad produced. Let's also say that the price the Tribe sneakers went from $165 to its salesprice of $115, including shipping and handling. The variable costs come to $75. You had an advertising allowable of $25per order. So, now you can make some calculationsCalculate the contribution margin - to two decimal points. Do not write $ signQUESTION 2Calculate the number of orders or hitsQUESTION 3Calculate the break-evenQUESTION 4Calculate the net profit.

Here given the details of the advertisement which are given in the internet which can be generated…

pping per order. So, now you can make some calculations The variable costs come to $75. You had an advertising allowable of $25 Calculate the contribution margin - to two decimal points. Do not write $ sign QUESTION 2 Calculate the number of orders or hits QUESTION 3 Calculate the break-even

pping per order. So, now you can make some calculations The variable costs come to $75. You had an advertising allowable of $25 Calculate the contribution margin - to two decimal points. Do not write $ sign QUESTION 2 Calculate the number of orders or hits QUESTION 3 Calculate the break-even

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 29E: Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima....

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Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling “SunBoots” to customers for $70 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can’t obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for $100. ssume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots.
Jana and Cindy are planning to launch UP-PACK, a business that upcycles disposable masks into high quality packaging material. They think it can be a viable business but they need your advice; they want to make sure they aren't taking too big of a risk. Use the information below to create a 6 month cash budget. Based on their research of the industry, they plan to provide credit terms to their customers of 35% payment during the month of sale and 65% payment in the month following sale. Manufacturing supply costs are relatively low since they can get free used disposable masks from health care facilities but there are costs incurred to clean and upcycle the masks. They project their costs of goods sold (COGS) to be 24% of each month's sales. They anticipate having to pay 60% of these costs in the month of purchase and 40% in the month following purchase. Fortunately, Jana's brother has a large empty garage that they can operate in for the first year which saves them from renting…
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The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $17.00 each with a minimum order of 152 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 152. Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $34.00 each. Hooper would pay the students a commission of $4.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $7,904?…
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